Just 1% of BTC in a cash portfolio outperforms S&P 500, gold and bonds

10 Feb, 2019 | Updated: 10 Feb, 2019
by Will Heasman
Price Analysis
Just 1% of BTC in a cash portfolio outperforms S&P 500, gold and bonds

According to economic analysis, holding just 1% of BTC in a predominately cash based portfolio will consistently yield a better return than a portfolio made up of S&P 500, US Treasury Bonds and Gold.

This revelation was based on analytics sourced by an economics analyst going by the twitter handle “plan b”.

Within a Tweet, Plan b laid out a graph detailing the perfomance of several varying portfolios:

according to the analyst, while a combination of Gold, treasury bonds and S&P 500 stocks have a “nice risk/return line,” the addition of 1% Bitcoin into a 99% cash portfolio can dramatically increase return while keeping risk to a minimum.

Moreover, increasing to a 2% BTC / 98% cash portfolio doubles the return percentage, while only slightly increase risk by a factor of less than 5%.

However, this is no revelation, as reported in September of last year, Economists at Yale University conducted a comprehensive economic analysis of BTC, concluding that investors should hold a portfolio of 6% if they’re bullish on BTC, 4% if they’re on the fence and 1% if they’re bearish.

Read more: Yale economist suggests to buy BTC if it increases above 20% the previous week

Read more about: Bitcoin (BTC)


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